I.-The undertakings mentioned in Article L. 351-7 are prohibited from making a distribution relating to one of the items mentioned in i and ii of a of Article 69 of Commission Delegated Regulation (EU) No 2015/35 of 10 October 2014, classified in Level 1 as provided for in Article R. 351-23, in the event of non-hedging of the Solvency Capital Requirement or where such distribution is on such a scale…
For the purposes of this Chapter : 1° “Underwriting risk” means the risk of loss, or of adverse change in the value of insurance liabilities, resulting from inadequate pricing and reserving assumptions; 2° “Market risk” means the risk of loss, or of adverse change in the financial position, resulting directly or indirectly from fluctuations in the level and volatility of the market value of assets, liabilities and financial instruments; 3°…
Public limited companies subject to the provisions of this Title are exempt from the levy prescribed by Article L. 232-10 of the Commercial Code.
The Solvency Capital Requirement is calculated as follows: 1° This calculation is based on the assumption that the undertaking concerned is a going concern; 2° The Solvency Capital Requirement is calibrated to ensure that all quantifiable risks to which the insurance or reinsurance undertaking is exposed are taken into account. It covers the current portfolio as well as the new portfolio which is expected to be underwritten within the next…
Insurance and reinsurance undertakings shall calculate their Solvency Capital Requirement at least once a year and transmit the result of this calculation to the Autorité de contrôle prudentiel et de résolution in accordance with the procedures set out in Article L. 355-1. Insurance and reinsurance undertakings shall hold eligible own funds which cover the last Solvency Capital Requirement submitted. Insurance and reinsurance undertakings shall continuously monitor the amount of their…
The Solvency Capital Requirement calculated in accordance with the standard formula is the sum of the following elements: a) The Basic Solvency Capital Requirement provided for in Article R. 352-5 ; b) The capital requirement for operational risk provided for in Article R. 352-8; c) The adjustment provided for in Article R. 352-9 to take account of the loss-absorbing capacity of the prudential technical provisions referred to in Article L….
I.-The Basic Solvency Capital Requirement is composed of individual risk modules which are aggregated. It comprises at least the following risk modules: a) Non-life underwriting risk; b) Life underwriting risk; c) Health underwriting risk; d) Market risk; e) Counterparty risk. The methods for aggregating the various risk modules, as well as the component of the Basic Solvency Capital relating to the risk on intangible assets, are specified in Article 87…
I.-The Basic Solvency Capital Requirement is calculated as follows: 1° The “non-life underwriting risk” module reflects the risk arising from non-life insurance commitments, taking into account the perils covered and the procedures applied in the conduct of this business. It takes account of the uncertainty weighing on the results of insurance and reinsurance undertakings in the context of their existing insurance and reinsurance commitments, as well as the new portfolio…
The “equity risk” sub-module referred to in 4° of I of Article R. 352-6 calculated in accordance with the standard formula includes a symmetrical adjustment mechanism for the standard capital requirement for equities which serves to cover the risk arising from variations in the level of equity prices. It also takes into account the provisions of article R. 352-12. The symmetric adjustment of the standard equity capital requirement, calibrated in…
The capital requirement for operational risk reflects operational risks, insofar as these are not already taken into account in the risk modules mentioned in article R. 352-5. This requirement is calibrated in accordance with 2° of Article R. 352-2. In the case of life insurance contracts where the investment risk is borne by the policyholder, the subscriber or the beneficiary of the contract, the calculation of the capital requirement for…
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is a Registered Trademark of
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75001, Paris France
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